[Executive Forum] An Interview with Ashish Malik

Ashish Malik has never walked away from a challenge. It’s a lesson he learned from his father, Raj, who faced numerous challenges as director of the United Nations’ Food and Agricultural Organization (FAO), a not particularly visible, but many would argue the most effective, arm of the United Nations. "He taught me the value of following through on your commitments," Malik said, regardless of the prospects for success. "My father put together a lot of regulatory programs for underdeveloped countries that helped a lot of people. Oftentimes, the food and hunger problems were enormous but he never gave up, even when the challenges seemed overwhelming. He’s my role model."

Growing up in the shadow of such an influential figure, Malik acquired a unique view of the world, a view shaped by his father’s quiet strength, forward-thinking intellect and compassion for others. "I was brought up in a household where education was important and you were expected to respect other people and cultures," he said. "Having lived on several different continents growing up, I realized at a very early age that the world was changing and you needed to think differently in order to succeed."

Malik’s desire to think differently brought him to the United States in 1984 to attend Swarthmore College in suburban Philadelphia, majoring in electrical engineering. Following graduation, Malik joined North American Drager, where he designed life-support systems before leaving the company in 1990 to earn an MBA from Carnegie Mellon University. Following career stops at B.F. Goodrich, where he served as a senior financial analyst and market manager, and Imerys, a French-owned minerals company with offices in Atlanta, Ga., Malik joined Syngenta Professional Products as Professional Pest Management Business Unit Head in the fall of 2003.

"I find working in an environment such as Syngenta to be more intellectually challenging than designing the newest high-tech gizmo or analyzing financial figures," Malik said. "At Syngenta, I’m involved in a mature industry and developing strategic marketing programs designed to grow the business, while developing products and services that will protect public health and benefit mankind. It’s a wonderful opportunity and I’m looking forward to the challenge."

PCT Publisher Dan Moreland recently sat down with Malik at Syngenta headquarters in Greensboro, N.C., to learn more about his plans for the Professional Pest Management Business Unit.

 

MORELAND: When you were considering your next career move what were some of the factors that attracted you to the position at Syngenta Professional Products?

MALIK: There were several things that piqued my interest. Having lived on three continents I was definitely looking to work in an international environment and Syngenta is a world-class company with a global reach. It was also a company that was coming off of a merger of two very large agri-chemical companies, but it had sorted through the operational issues associated with the merger and was interested in investing in top-line growth. The new organization is only three years old, so it’s still relatively young in its development. In going through the interview process I liked the culture of the new organization – the openness, the idea generation and the respect people had for one another, so that’s why I joined the company.

MORELAND: Why do you think Syngenta hired you to lead its Professional Pest Management Business Unit?

MALIK: You’d have to ask them, but I’m obviously not somebody who has pest management experience. What I do bring to the table, however, is strategic marketing as a skill set. I believe industry experience is important, but if you’re very good at a certain business practice – such as sales/marketing – that transfers very easily from industry to industry, especially in the business-to-business field. To be successful, it’s a matter of identifying an opportunity, formulating a strategy, creating a business plan and executing that business plan. In my case, I think Syngenta was looking for someone who had demonstrated those skills at another organization outside of pest management to complement the vast industry experience already present in the company. It brings fresh ideas and fresh thinking to the organization.

MORELAND: Since, as you mentioned, you have no practical pest management experience, how did you get up to speed with the industry?

Syngenta At A Glance

Year Founded: 2000 Syngenta Crop Protection was founded November 13, 2000, although the Syngenta legacy companies — Novartis and Zeneca — have a long history in the industry dating as far back as the 18th century. Founded in 1970 as Ciba, and through several other mergers and acquisitions, Novartis joined Zeneca, which was founded as ICI in 1967 and also withstood many mergers and acquisitions, to form what is known today as Syngenta. Global Headquarters: Basel, Switzerland U.S. Headquarters: Greensboro, N.C. Annual Revenues: $6.6 billion Number of Employees: Approximately 19,000 Countries with Syngenta Operations: 90 U.S. Manufacturing and Processing Facilities: 5 Syngenta Crop Protection operates five manufacturing facilities and two formulation facilities in the U.S. Syngenta also contracts with 43 other formulation and packaging facilities. Key Brands: • IMPASSE Termite Blockers • SecureChoice Innovative Technologies and Business Solutions • Demon TC insecticide • Demand CS insecticide • Archer insecticide • Talon-G rodenticide • WeatherBlok XT rodenticide

MALIK: I was fortunate. I joined Syngenta 10 days before the NPMA Convention in Texas. It was just enough time for me to get to know my team before heading out and meeting customers and start learning about the industry. The first month of my time, quite honestly, consisted of interviewing a lot of people about the challenges facing the industry and how Syngenta could help address those challenges from a product and service perspective. Timing wise it couldn’t have been better. I got immersed in the business from day one.

MORELAND: What was your initial impression of the pest control industry?

MALIK: It was different than I expected. What struck me more than anything else is the collegial atmosphere that is present in the industry. It was just amazing how open and friendly people were with each other during the NPMA Convention. It was a bit of a surprise to me, but it was very refreshing. I’ve come from environments where there’s been a lot of negative marketing and negative behavior toward one another almost on a personal level. Yes, we are all competitors day in and day out. However, at the end of the day we can still work together with our trade group for the betterment of the industry and to improve our industry’s public image.

MORELAND: In looking at Syngenta’s product portfolio, can you give our readers a sense for how you plan to move the business forward in the months and years ahead?

MALIK: If you look at where Syngenta is versus the other basic manufacturers we’re in a unique position. In the pest management business, we’re not the largest, but our advantage is we have one of the broadest portfolios in the industry. We have core chemistry that addresses the rodent, termite, ant and cockroach control markets, so we have a very solid foundation. Because we have such a broad product portfolio we have the eyes and ears of our customers. What we’re all about now is taking the intimacy we’ve developed with our customers, understanding what’s going to make them more profit in the future, and developing new products and solutions around that knowledge. It’s not going to be easy, but I think we’re in a position of strength.

MORELAND: Can you provide our readers with a candid assessment of each product category in Syngenta’s portfolio?

MALIK: Sure. In terms of the rodent control market, there isn’t any new chemistry on the horizon and there has not been a lot of innovation in this market, so I think moving forward rodent control is going to be all about packaging the best chemistry, creating the best formulations and providing the best service. If you look at the general pest control market, there’s a lot of opportunity to improve not only the pest management profes-sional’s profitability by bringing some new chemistries to the market, but also by bringing new services and business tools to the PMP, such as those under our SecureChoice umbrella (i.e., ePM, ChoiceCommunica-tions). The industry is currently undergoing some fast-paced changes in the termite control market. The introduction of non-repellent chemistry has had a dramatic impact on the marketplace.

In addition, the pre-treat market has undergone significant changes as well. Pre-treats have traditionally been an area where the pest management professional has not made much money. In many cases, it was a way for them to get their foot in the door and sell other services. But with the introduction of products like Impasse Termite Blockers, there are some new profit opportunities in the pre-treat market. I also see the lines between pre-treat and post-construction treatments blurring as we move forward. Heading into the future, there are going to be certain products and chemistries that address both of these markets.

MORELAND: Do you think that’s a healthy development for the industry? The pre-treat market has always been the root of a certain amount of tension.

MALIK: Yes I do. Given the current state of the termite market it appears the industry is moving towards a preventive model rather than a remedial model. That’s a positive development in my opinion. I believe termite prevention should start when a house is built and it should utilize the best available technology.

MORELAND: What can you do to change the mindset of an industry that has relied on remedial termiticide treatments for so long?

MALIK: I think the onus is on us. We have an intimate relationship with our PMP customers, so it’s up to us to bring that message to them. Our challenge is to educate our customers about how they can start making money in the pre-treat market. A lot of companies are going to have very similar chemistries in the future, so I’m convinced it will come down to who is viewed as the most trusted business partner for the customer.

MORELAND: How do you go about getting members of your business unit to think differently about Syngenta’s mission as a company?

MALIK: It’s the kind of thing I’ve done previously in my career. If you start by saying that our strategic vision for the future is to become the most trusted business partner to our customers – so they turn to us for their answers before they go to anybody else – the thing we have to do better than any other company is be the best at listening and the best at innovating. Those are cornerstones of the new culture we’re trying to create. You can’t become a good listener or a good innovator overnight, so we’re investing very heavily in both our organization and our people. And we’re bringing people in that have demonstrated those qualities in other industries.

MORELAND: Has that resulted in any organizational changes?

MALIK: Yes. What we’ve done is we’re taking our commercial organization and we’re breaking it down into regional teams. Each individual has accountability for a group of customers and a group of business activities, but they’re also part of a team. And at the end of the day they’re going to be measured on how the team performs, not their individual accomplishments. So we’re approaching this thing in a different way than has been done in the past. It’s as much team accountability as individual accountability.

MORELAND: Could you describe the company’s new structure?

MALIK: Today, our salespeople in the Professional Pest Management Business Unit are broken down into five regional teams. The regional teams have people on the team who are selling to PMPs, as well as calling on builders in support of our Impasse effort. We’ve also got a marketing group, technical group, and channel management (distributor) group that report to me. We’re definitely investing in the industry.

MORELAND: Can you tell our readers a bit more about Syngenta’s joint-selling effort as it relates to Impasse Termite Blockers?

MALIK: What we’re trying to do with Impasse is take our marketing message to all the people who are influencing the buying decision. Certainly, the consumer plays a role in selecting a termite product or service, so we’re investing in some consumer-oriented marketing. The builder also plays a role, so we’re investing in an organization that talks directly to builders. However, the cornerstone of the entire transaction is the PMP. They’re the ones who make it happen. The way we’re approaching the pest management professional is we’re showing them they have an opportunity to start making money in pre-treats again, and we’re going to help them make that money by training and educating their staff about Impasse Termite Blockers. We understand that it all starts with the PMP.

MORELAND: What sort of feedback have you gotten from PMPs about this strategy?

MALIK: It has evolved over time. We started the conversation by conducting focus groups with PMPs throughout the country. We listened. We heard they were concerned that builders weren’t going to pay more for a pre-treat service with Impasse when other less expensive alternatives were available. That’s why we added a builder-focused marketing component to our strategy – to educate them on why effective termite control is important for their customers. This ultimately benefits all PMPs within the industry.

MORELAND: Who is the ideal target audience for Impasse Termite Blockers?

MALIK: It’s the person who is responsible for making decisions about what upgrades will be made in the home at the time of the purchase, which is the homeowner. At the builder level, our target audience is the more progressive builder who is willing to try something new and understands that you can make money from a premium termite product.

MORELAND: While there have been several new active ingredients introduced in the termite market in recent years, the rodent control market – where Syngenta also has a product presence – has seen fewer chemical innovations. What are your plans for the rodent control market?

MALIK: As I mentioned previously, we’re no longer simply a chemical company. We view ourselves as a total solutions provider. So, like the rest of our business, we’re reviewing our rodent control products and services so they will provide more value to the customer. For instance, last year we launched the Multiplex Station, a premium bait station that addresses a variety of pest control problems, from rodents to ants.

MORELAND: How has the Multiplex Station been received by the marketplace?

MALIK: It was only available the second half of the rodent control season last year, so I think 2004 is going to be a much truer test of the value of the product. Based on our experience in 2003, we learned where the station worked well and where it could work better, so we’re developing some design changes to make it a more robust product in the future. We learned a lot about rodent bait stations last year, but we’ve still got a lot to learn, which I believe is an illustration of our commitment to the market.

MORELAND: What are some of the specific changes you’re considering in the design of the Multiplex Station?

MALIK: I don’t want to get into the details at this point. One thing I can say, however, is that we will only launch a new feature if we feel it’s an improvement over the previous design. We’re testing a couple of different concepts right now.

MORELAND: What’s your strategy for the rest of Syngenta’s GPC product line?

MALIK: Two years ago we introduced SecureChoice, a branding initiative designed to assist PMPs in growing their businesses. As part of that initiative we launched Choice-Communications, a virtual marketing program for our customers, and ePM, a Web-based information management system providing all kinds of benefits to PMPs. These are complementary business tools designed to further enhance our customer relationships.

MORELAND: Can you give our readers any insights about any new active ingredients Syngenta currently has in the pipeline?

MALIK: At any given time we have dozens of products that are at various stages of discovery within the Syngenta pipeline. There are two active ingredients, in particular, we’re very excited about. One is thiamethoxam, a new non-repellent insecticide with excellent activity against termites and ants. The first thiamethoxam-based product we’ll be introducing is Optigard DW for drywood termite control. We’re also working on two additional formulations of the product that will be introduced some time in the next two years.

The second active ingredient we’re excited about is lufenuron under the trademark Zyrox, which is our termite baiting technology. We’re currently conducting EUP trials with the product and we’re getting very positive data back from the studies. We’re anticipating registration of Zyrox in 2006.

MORELAND: Everything I’ve read about thiamethoxam is very positive, but how do you plan to differentiate this chemistry from other non-repellent products that have beaten Syngenta to market?

MALIK: That’s a fair question. I think it goes back to how do you define your business. Are we a chemical manufacturer or are we a solutions provider? You have to have chemistry to play in the game, and thia-methoxam will be a very good product in that regard. The bigger question is how will the business model be put together for the product so we can deliver the best overall solution to the pest management professional? That’s what we’re focusing on as a company. We’re all about customer-focused applications development.

MORELAND: Speaking of thiamethoxam, have you given much thought to how you’re going to position this active ingredient when it is introduced later this year?

MALIK: It really depends on what happens in the termite market in the next few months. I don’t necessarily want to commit to a business model today knowing that later this year there’s likely to be some regulatory action relating to the use of non-repellent termiticides in the pre-treat market. We also need to see how Impasse fits into the picture. We have some hypotheses, which I don’t really know are going to still be valid when we launch the product.

If you look at Syngenta two years from now it’s not inconceivable that we’ll have the elite termite control program in the industry with our Zyrox baiting technology, Optigard non-repellent termiticide and Impasse Termite Blockers. And that’s already building on a very solid cypermethrin customer base that we have with Demon TC. So, we’re very excited about our prospects for the termite market in the future.

MORELAND: Is there anything else in the pipeline you’d like to share with our readers?

MALIK: We’ve got dozens of things in the pipeline that are in various stages of development, but I’d rather wait until we know they’re viable before talking about them. We’re trying to create a company-wide culture where we foster innovation and creativity as one of our core cultural pillars. So we’re not putting any limitations on people. We’re letting people dream.

MORELAND: Speaking of your people, some of the key figures within the organization have changed in recent years. Where does the company currently stand in terms of its staffing?

MALIK: Any company that goes through the number of mergers that Syngenta has gone through in the last few years has some good people. That’s because the best people typically survive the merger and acquisition process. So we’ve got an extremely solid group of people that are very knowledgeable working in the Professional Pest Management Business Unit. Our technical group, under the leadership of Dr. Dan Kidder, is very well respected within the industry. And Dale Kaukeinen, a longtime employee, is one of the country’s most highly regarded rodent experts. We’re starting from a very solid base of good people, and just by bringing innovative and new marketing ideas, I think we’re very well positioned for the future.

MORELAND: Your appointment was one of the major changes at Syngenta this past year. How is your style different from your predecessor Keelan Pulliam?

MALIK: I don’t really know, but Keelan is an outstanding leader who is doing some pretty innovative and exciting things on the turf, ornamental and aquatics side of our business. He contributed a great deal to the pest management industry. I can’t say enough good things about Keelan. While Syngenta is a strong company with a broad portfolio of products, I firmly believe we can be a much bigger player in the future. So my challenge is going to be how to double or triple the size of this business in the years ahead, and that’s only going to happen through aggressively implementing some new ideas.

MORELAND: How would you describe the current culture of the Professional Pest Management Business Unit?

MALIK: Now that the merger is behind us, we’re ready to move ahead and address the challenges of the future. The two things we must do better than anyone else is listen and innovate. So we’re really trying to encourage our people, when they visit a customer, not to sell but to listen. If we can start doing that effectively and develop an ingrained, systemized culture where we’re constantly listening and innovating, I think we’ll be successful.

MORELAND: How would you assess Syngenta’s relationship with distributors?

MALIK: I think the distributor community is essential to the successful execution of our business strategy. The things we’re hearing from our distributors is that they want us to work with them to figure out how they can help us achieve our objectives with the PMP, which is very positive. It’s very much a market-driven approach.

MORELAND: Do you have other initiatives planned for the industry?

MALIK: Syngenta remains very active in the National Pest Management Association. We believe in true leadership and that includes our involvement in state and national associations. As you know, we also work with PCT every year on the Leadership Awards and the Technician of the Year Awards, a commitment we plan to continue. And we complement those programs by helping to develop the next generation of leaders through the NPMA Academy. We believe that’s what leadership is all about, contributing in tangible ways to the growth and development of the industry.

MORELAND: Is there anything else you’d like to touch on?

MALIK: I’d just like to say we have some world-class competition at the basic manufacturer level, but we’re up to the challenge. We’re looking forward to working with our PMP partners to determine how we can enhance their bottom line, while further strengthening our own business. It should be fun.